S&P Chart Weakness Ahead of Presidential Debate and Unemployment
Stocks are higher so far on Tuesday ahead of the first presidential debate on Wednesday and ahead of Friday's key employment report. With the way the markets have been acting, the charts may be ruling the roost. Today we are analyzing the SPDR S&P 500 (NYSEMKT: SPY) as it is the most liquid of all ETFs.
For Tuesday's chart analysis, Phil Erlanger said,
Monday saw SPY above resistance at $144.53. We noted, "Watch to see if the 5 minute high of $144.91 can be taken out to move SPY back above $145. A move below resistance would be an opportunity to get short intraday. Triggers should then be used to manage the trade." SPY failed at resistance and closed at $144.35. Today futures were el fuego and it looked like a strong open. Now SPY has broken pivot of $144.68. Clearly, stocks that make up SPY are not living up to their potential and we would be a cautious buyer as we are in the worst of the seasonal weakness that lasts until October 10th.
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OCTOBER 2, 2012
Filed under: 24/7 Wall St. Wire, Active Trader